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3 Big Things Today, December 14, 2021

Soybeans, Grains Lower Overnight; Weekly Corn Export Inspections Rise.

1. Soybeans and Grains Down Slightly Overnight

Soybean and grain futures were modestly lower in overnight trading on mixed forecasts for Brazil and Argentina.

Rains last weekend were as expected in much of Brazil, favoring major growing areas including Mato Grosso, Mato Grosso do Sul, Goias, Minas, and Bahia, said Aaron Carmichael, a meteorologist with Maxar.

Rains will continue to fall in those areas this week, he said in a report.

Still, the outlook isn’t all rosy.

“Rains in northern areas this week will maintain moisture, but dryness and stress will build further in central and southwestern areas,” Carmichael said.

In Argentina, showers spanned much of the country over the weekend and likely will fall in most growing areas this week, he said.

As in Brazil, rainfall this week will benefit some areas, but any rain likely will be offset by dry weather next week, the report said.

Rainfall was ample in November in several growing areas, leading Brazil’s food and statistics agency to raise its outlook for soybean production to a record 142.8 million metric tons.

Wheat was narrowly lower on forecasts for record Australian production this year, though extremely dry weather in the U.S. Southern Plains is underpinning prices.

Red-flag warnings, an indication of extremely dry conditions, and high-wind warnings have been issued for parts of the Southern Plains, according to the National Weather Service.

Soybean futures for November delivery lost 2¼¢ to $12.41¾ a bushel overnight on the Chicago Board of Trade. Soymeal was up $2 to $364.10 a short ton, while soy oil fell 0.58¢ to 52.77¢ a pound.

Wheat futures for March delivery dropped 3¼¢ to $7.85½ a bushel, while Kansas City futures fell 2¼¢ to $8.10¼ a bushel.

Corn futures for December delivery were down 1½¢ to $5.83½ a bushel.

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2. Corn Inspections Rise While Bean, Wheat Assessments Fall

Inspections of corn rose week-to-week while bean and wheat assessments declined, according to the USDA.

Corn inspections for overseas delivery rose to 810,395 metric tons in the seven days that ended on Dec. 9, the agency said in a report.

That’s up from 774,958 metric tons a week earlier but still behind the 924,246 tons examined during the same week last year.

Soybean assessments fell to 1.72 million metric tons from 2.33 million the previous week, the government said. The total also was down from the 2.46 million metric tons inspected during the same week in 2020.

Wheat inspections last week totaled 245,090 metric tons, down slightly from 246,257 tons a week earlier and the 263,440 tons a year earlier, the USDA said.

Since the start of the marketing year on Sept. 1, the government has inspected 10.2 million metric tons of corn for offshore delivery.

That’s down from the 12.1 million tons assessed during the same time frame last year, the agency said.

Soybean inspections since the beginning of September are now at 25.4 million metric tons, down from 32.3 million tons in the same period a year earlier.

Wheat assessments since the start of the grain’s marketing year on June 1 now stand at 11.4 million metric tons, down from 13.7 million tons at this point last year, the USDA said in its report.

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3. Winter Weather, Strong Winds Expected in Midwest

A winter weather advisory has been issued for much of South Dakota starting tomorrow at noon and lasting into Thursday as snow and strong winds are expected, according to the National Weather Service.

Only about an inch of snow is expected to accumulate, but winds are forecast up to 60 mph, the NWS said in a report early this morning.

“As cold air pushes in, the wet surfaces will freeze and create icy conditions,” the agency said. “Therefore, the combination of ice, snow, and wind could create difficult travel conditions.”

Strong winds are forecast from eastern Colorado east into central Wisconsin tomorrow.

In central Iowa, winds will be sustained from 25 to 40 mph with gusts of more than 60 mph, the agency said. A high-wind warning has been issued for the area from 3 p.m. Wednesday until 3 a.m. Thursday.

“Damaging winds will blow down trees and power lines,” the NWS said. “Widespread power outages are expected.”

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